Markets Overview:

UK Index called to open +7 points at 7220; this comes on the back of stocks rising following cautious hopes of a Brexit deal, this very much hangs in the balance currently as the deadline of October 31st approaches (The EU however famously like to get an eleventh hour deal done, could this be in focus this week?). Overnight Asian sessions were mixed amid a lack of clear direction, with Chinese CPI narrowly beating consensus and PPI inline. This saw the Nikkei rising just shy of 2% on the day, the Hang Seng however was negative by a tenth of a percent. During US trading yesterday we saw the Dow Jones rally to regain opening losses, closing the day just 30 points offside. Oil prices extended losses overnight slipping below $60 for the first time since Thursday! Gold saw some slight signs of rising closing $6 short of the key $1500 handle

In corporate news this morning:

Bellway delivered robust financial performance driven by record volume, revenue grew YoY +8.6%; Gross Profit +4.3%; Op Profit +3.4%; Profit before tax +3.4%; EPS +3.4%; Dividend per share +5.2%

Hays reported Q1 Group net fees +1% on a headline basis and were flat on a like-for-like basis against the prior year. The modest weakening of Sterling, primarily versus the Euro, increased our reported net fee growth.

Indivior this morning raised full year guidance for full year net revenue and net income following stronger than expected net revenue performance.  Net revenue now expected to be in the range of $750m-$790m (Previously $670m-$720m) and net income in the range of $160m to $190m (previously $80m to $130m)

Marston’s announced their year end trading update with sales +3%, turnover +3%, EBITDA flat and underlying profit before tax of £101m with higher operating profits in their taverns and beer businesses offset by lower earnings in destination and premium. They expect profits for 2020 to be in line with 2019. 

Rank Group announced Q3 Group like-for-like net gaming revenue (NGR) +10%, with total NGR +9%.  On a channel basis, digital NGR +16% and venues like-for-like NGR +9%. 

Schroders today confirms its assets under management (AUM) at 30 September 2019 as follows £405.8bn vs £407.2bn (+10.7%)

Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Upgrades/Downgrades:

Dunelm Upgraded to a sector perform rating by RBC Capital Markets (Bloomberg: 2 buys/ 5 holds/ 3 sells)

Hilton Food Group Upgraded to a Buy rating by Peel Hunt (Bloomberg: 5 buys/ 3 holds/ 0 sells)

Sophos Downgraded to a Hold rating by Jefferies (Bloomberg: 2 buys/ 6 holds/ 1 sells)

In Focus Today:

Chinese Consumer Price Index (CPI)

UK Average earnings data

German ZEW Economic sentiment

Companies reporting today:

Hays, Marstons, Merlin, Rio Tinto (After hours), Schroders, Bellway

Companies reporting tomorrow:

ASOS, Nanoco, BHP, Mediclinic, Segro

Companies reporting this week:

Domino’s Pizza, Rentokil, Dechra, LSE, Unilever

(Full list available on Week in advance)

This Week’s Ex-Dividends:

Smiths Group – 2.1%

BAE – 1.7%

Marshalls – 3.2%

(Full list available on Week in advance)

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